IN RE Vs. STERLING RELOCATION PRIVATE LIMITED

JUDGEMENT

(1.) The Petitioner Company was incorporated on 26.06.2013 and has its Registered Office at 2F, Elegance, Jasola District Centre, Old Mathura Road, New Delhi-110025. The applicant is a subsidiary of M/s. Sterling International Group Limited (the Holding Company) . The Holding Company was acquired by a UniGroup Inc., USA( called as the "Ultimate Holding Company") ,a foreign body corporate registered in the USA and the accounts of the Holding Company including that of the Applicant are consolidated with the accounts of the Foreign Holding Company.

(2.) It is submitted that as per the requirement under IFRS-10 (International Financial Reporting Systems) , the holding Company is required to consolidate the financials of the Petitioner Company. The financial year followed by the principal holding company based in UK is stated to be as per the calendar year, Le from 1st January to 31st December. Vide the present petition, the applicant prays for permission to follow the same financial year i.e from 1st January to 31st December. This would be in keeping with the financial year adopted by its Ultimate Holding Company UniGroup Inc., USA. The aligning of the applicant's financial year with the Ultimate Holding company would streamline and facilitate the preparation of the consolidated financial Statements. The decision to adopt the financial year as 1st Jan to 31st Dec has also been duly approved by the applicant company's Board of Directors in its meeting held on 13th feb, 2017.

(3.) The prayer of the petitioner, (being a subsidiary of a company incorporated outside India) , for adopting a different financial year vis-a-vis as mandated under Section 2(41) of the Companies Act, 2013 merits consideration and is permissible under the proviso of the aforesaid section in the circumstances as stated above.